US stock futures have cooled down tensions in the Middle East. Focused Powell

(Reuters) – US stock futures were curtailed on Wednesday after Israel and Iran were closed on record records a day before the Air Force War ended, after investors were waiting for more comments as investors were waiting for more comments from Federal Reserve Chairman Jerome Powell.

All three major indices scored more than 1% on Tuesday, with the Benchmark S&P 500 index reaching its all-time high below 1% as the de-escalation of hostilities in the Middle East supported risk sentiment.

“Back to yesterday’s market movement, the main reason the market reflected so much is that lower oil prices (and hence lower inflation) maintains the prospects for rate cuts this year,” said Jim Reid, global head of macro and theme research at Deutsche Bank.

On the second day of Powell’s parliamentary testimony, scheduled for 10am ET, investors look for tips on the central bank’s monetary policy path.

This is the day after Powell highlighted the Fed’s wait and watch approach to interest rates as tax-driven price pressures begin. However, he also said that lower than expected inflation measures or weaknesses in the labour market will lead to central banks reducing faster.

According to CME Group’s FedWatch tool, the money market movement is priced at around 60 basis points by the end of 2025, indicating a 71% chance of a 25 bps fee reduction in September.

At 05:32 AM ET, the Dow E Minis fell 13 points, at 0.03%, and the S&P 500 E-MINIS increased by 1 point (0.02%). The Nasdaq 100 E-Minis increased by 19.75 points (0.09%).

Stocks in delivery giant FedEx fell 5.5% in pre-market trade after companies projected quarterly profit, forecasted quarterly profit, focused on citywide demand.

Investors will also focus on the Department of Commerce’s final view on first quarter GDP scheduled for Thursday, and on the Personal Consumption Expense (PCE) report on Friday, helping to see the economic impact of President Donald Trump’s tariffs being dominated since the end of the year.

Shares in Micron Technology rose 0.6% more than the chipmaker’s quarterly results after the closure bell.

Stocks on the US list of cybersecurity firm BlackBerry jumped after raising its annual revenue forecast, citing stable demand amid rising online crime.

(Reporting by Kanchana Chakravarty of Bengaluru, Editing by Devika Syamnath)